By Scott DiSavino
May 5 (Reuters) - U.S. energy firms cut the most oil and
natural gas rigs in a week since February, energy services firm
Baker Hughes Co said in its closely followed report on
Friday.
The oil and gas rig count, an early indicator of future
output, fell by seven to 748 in the week to May 5. Despite this week's rig decline, Baker Hughes said the total
count was still up 43 rigs, or 6%, over this time last year.
Oil rigs fell by three to 588 this week, in their
biggest weekly decline since March. Gas rigs fell by four to
157, their biggest weekly decline since February.
U.S. oil futures were down about 11% so far this
year after gaining about 7% in 2022. U.S. gas futures ,
meanwhile, have plunged about 52% so far this year after rising
about 20% last year.
U.S. oil and gas production grew rapidly in the first
two months of 2023 – a delayed response to the high prices and
upturn in drilling that characterized much of last year
following Russia’s invasion of Ukraine.
But
growth is set to decelerate
sharply as the more recent slump in prices curtails new
drilling and well completions, with the impact evident by the
fourth quarter of 2023.
This week,
Chesapeake Energy Corp ,
EOG Resources and
APA Corp said they could delay some well completions or ramp
down drilling due to weak prices.
Shale producer
Diamondback Energy , however, noted rig prices are falling and steel
costs are set to decline by about $20-$25 per foot, a sign the
inflationary pressures that plagued the oilfield in the past
year are easing.
(Reporting by Scott DiSavino
Editing by Marguerita Choy)
Messaging: scott.disavino.thomsonreuters.com@reuters.net))
For U.S./Canada natural gas rig count vs Henry Hub futures price, see: U.S. natural gas inventories: For a list of all Baker Hughes rig counts around the world, see: For U.S. oil rigs, see: For U.S. gas rigs, see: ))
